{"id":88062,"date":"2024-07-23T00:00:00","date_gmt":"2024-07-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/07\/23\/local-capital-market-set-for-continued-growth-in-2h-2024-says-hsbc\/"},"modified":"2024-07-23T00:00:00","modified_gmt":"2024-07-23T00:00:00","slug":"local-capital-market-set-for-continued-growth-in-2h-2024-says-hsbc","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/07\/23\/local-capital-market-set-for-continued-growth-in-2h-2024-says-hsbc\/","title":{"rendered":"Local capital market set for continued growth in 2H 2024, says HSBC"},"content":{"rendered":"

Our friends at HSBC expect the local capital market to maintain its momentum in 2H 2024 <\/strong>on the back of a strong pipeline of IPOs and potential investments available to local and foreign investors, HSBC Saudi CEO Faris AlGhannam told Argaam<\/a> on the sidelines of the HSBC GCC Conference in London. AlGhannam also sees sustained activity in the local debt, sukuk, and bond markets during the back half of the year.<\/p>\n

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Tadawul had a strong showing in 1H<\/strong>, surpassing the first half of 2023 thanks to ongoing reforms and diversification projects drawing in FDI, AlGhannam said. These developments are setting up the local stock market to be the largest and most liquid in the GCC this year, he added. Additionally, the Kingdom\u2019s inclusion in major international indices since 2019 \u2014 such as MSCI, FTSE Russell and S&P Dow Jones and the EMBI sovereign bond index \u2014 has further boosted FDI, contributing to Tadawul posting 11% growth in 2023. <\/p>\n

REMEMBER- <\/strong>Saudi accounted for the lion\u2019s share of proceeds<\/a> flowing into Gulf IPOs in 1H 2024, raising USD 2.1 bn in IPO proceeds during the period, investment bank Kuwait Financial Centre (Markaz) said in a report earlier this month. Out of a total of 23 offerings in the Gulf during the first half, 19 were in the Kingdom with three in the UAE, and one in Kuwait.<\/p>\n

HSBC advised on more than half of the transactions that went to market in 1H 2024<\/strong>, according to AlGhannam. These include Fakeeh Care Group\u2019s IPO<\/a>, which was the largest IPO on Tadawul during the period. The bank also advised Aramco on its follow-on offering, which recently raised<\/a> a total of USD 12.4 bn in proceeds by exercising the greenshoe option following the end of the stabilization period.<\/p>\n

As for the pipeline? There\u2019s lots more where that came from:<\/strong><\/p>\n